Bit24.cash Security Flaw Exposes KYC Data of 230K Users

Bit24.cash, an Iranian crypto trading platform, has reportedly exposed sensitive data belonging to almost 230,000 users. This incident, uncovered by Cybernews, raises serious concerns about the security measures implemented by digital currency exchanges, particularly in the realm of user data protection.

Details of the Security Breach

The investigation by Cybernews revealed that Bit24.cash had a misconfiguration in its cloud storage system. This error resulted in unauthorized access to the platform’s Know Your Customer (KYC) data, a critical component in regulatory compliance and user verification processes. The data exposed includes passports, IDs, credit cards, and written consent to regulations. This breach is particularly alarming given the sensitive nature of the information involved.

In response to these allegations, Bit24.cash spokesperson Hossein Amini refuted the claims, stating that the report was inaccurate and misleading. Amini emphasized no evidence of a data breach or unauthorized access to user information. He further asserted that the company’s MinIO instance and cloud storage containers were secure, contradicting the findings of the Cybernews investigation.

Bit24.cash’s Market Influence

Despite the reassurances from Bit24.cash, the contrasting claims from Cybernews have led to heightened concerns among the platform’s users. While Bit24.cash maintains the security and integrity of its systems, the reported breach has prompted users to question the safety of their personal data. Cybernews has advised concerned users to contact Bit24.cash support for more information and reassurance regarding their data security.

Bit24.cash, along with other Iranian crypto exchanges such as Wallex.ir, Excoino, and Aban Tether, have been a significant player in the Iranian cryptocurrency market. In 2022, these platforms accounted for 12% of all funds, both domestic and international, that flowed to Iranian exchanges.

According to a report by TRM Labs, a majority of these funds originated from external exchanges, with a smaller percentage coming from smart contracts and unhosted wallets. This prominence in the market highlights the potential impact of the reported security breach, not just on individual users but on the broader cryptocurrency ecosystem in Iran.

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.